Ethanol futures closed lower for the first time in four weeks as late-week pressure in the corn market sparked additional pressure in ethanol markets Friday.
January futures closed at $2.375 per gallon, which is the lowest weekly close in January futures since the first week in November.
Corn prices continue to be the driving force behind the moves in the ethanol markets. The corn market fell 15 cents per bushel on the weekly close, at $7.37 per bushel in the March contract month.
The late-week pressure in the ethanol and corn markets seemed to quickly take the wind out of the aggressive buying activity seen early in the week and create some second thoughts about just how much additional short-term support may develop through the corn and ethanol market.
Even with market weakness developing at the end of the week, there are still legitimate concerns about the ability to supply current corn demand levels after the drought reduced the corn crop during the growing season.
Rick Kment can be reached at firstname.lastname@example.org
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